The newspaper ad, which aimed to show the benefits customers would lose by switching to EDF, pointed out in bold that the company was 'formerly known as Electricite de France,' a phrase the ASA said was 'denigratory, as it suggested the origin of the product was France'.
A British Gas spokesman said the ruling 'is political correctness gone mad', adding that it is calling for an independent review.
The ASA did not uphold a public complaint that the ad was xenophobic.